Meydan Free Zone offers a flexible, cost-effective licensing environment that has become popular with startups, e-commerce brands and digital businesses. As a UAE free zone, Meydan entities can potentially access the 0% Corporate Tax rate on qualifying income — but only by meeting specific conditions.
QFZP conditions for digital businesses
To keep the 0% rate as a Qualifying Free Zone Person, a Meydan entity must satisfy economic-substance requirements, stay within the de minimis limit for non-qualifying income, and avoid a permanent establishment outside the free zone. For e-commerce specifically, sales to UAE consumers attract VAT, while genuine exports of services to overseas customers may be zero-rated — the classification must be right before it flows into your invoicing. As e-invoicing arrives, digital sellers will need structured data and an accredited provider; check your readiness on our ASP readiness tool.
Because Meydan's licensing flexibility sits alongside real UAE tax obligations, structuring decisions are best made early — before they are locked in. We help Meydan businesses assess QFZP eligibility, get VAT treatment right, and prepare for e-invoicing, filing through our FTA-registered partner network.
Frequently asked questions
Can a Meydan free-zone company get the 0% Corporate Tax rate?
Yes, if it qualifies as a Qualifying Free Zone Person by meeting substance requirements and staying within the de minimis limit for non-qualifying income; otherwise the 9% rate applies.
Does an e-commerce business in Meydan charge VAT?
Sales to UAE customers are subject to 5% VAT, while genuine exports of services to overseas customers may be zero-rated, so the classification must be correct.